NEW DELHI: India’s economic outlook in the current financial year look much better as the World Bank revises India’s gross domestic product (GDP) growth rate for FY 23 to 6.9 per cent from 6.5 per cnet earlier. Meanwhile, Fitch Rating has also retained the FY23 economic growth forecast to 7 per cent on account of expansion in consumption and investment.
The World Bank in its latest report has said that India has shown higher resilience to the global shockwaves. It said in its report that India is economically well-positioned to deal with the global economic slowdown as against other emerging countries.
It added that a fall in the US economic growth is associated with a 0.4 percentage point fall in India’s growth, the effect of which is nearly 1.5 times greater than for other emerging economies. Thus, the impact of the slowdown in the US will have a muted effect on India’s GDP outlook.
It has upgraded India’s economic outlook to 6.9 per cent for the current fiscal. In the month of October, it cut the country’s growth outlook to 6.5 per cent from 7.5 per cent. However, it has been said that India’s economic growth will slow down to 6.6 per cent in FY24.
Meanwhile, Fitch Ratings has said that the Indian economy grew more than expected in the third quarter, increasing 6.3 per cent year-on-year owing to a large boost from consumption and investment, above than its September forecast of 5.5 per cent.
“Given the stronger-than-expected outturn, we have increased our growth forecast to 7.0 per cent in the financial year ending March 2023 (FY23). India is expected to record one of the fastest growth rates among emerging markets in our Fitch20 coverage this year,” Fitch said.
Fitch said that India is shielded to some extent from global economic shocks given the domestically focused nature of its economy, with consumption and investment making up the bulk of the country’s GDP.